Kale Corporation's Budgeted Fixed Factory Overhead Costs Are $25,000 Per

question 52

Multiple Choice

Kale Corporation's budgeted fixed factory overhead costs are $25,000 per month plus a variable factory overhead rate of $8.00 per direct labor hour.The standard direct labor hours allowed for November production were 10,000.An analysis of the factory overhead indicates that in November Kale had a favorable flexible-budget variance of $1,500 and an unfavorable production-volume variance of $500.Kale uses a two-variance analysis of overhead variances. The actual factory overhead incurred in October is:

• A)$105,500.
• B)$104,500.
• C)$106,500.
• D)$103,500.

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